State Street launches a fund for stablecoin issuers in accordance with the GENIUS Act
The investment division of financial giant State Street has introduced a new tool — the State Street Stablecoin Reserves Money Market Fund. This money market fund is specifically designed for stablecoin issuers and fully complies with the requirements of the U.S. GENIUS Act, which came into effect in July 2025.
The GENIUS Act established clear standards for using money markets as collateral for "stablecoins." The State Street fund is one of the first institutional solutions adapted to these rules. The initial investors in the structure were State Street Bank and Trust Company and the crypto bank Anchorage Digital.
State Street Investment Management head Yie-Hsin Hung emphasized that the GENIUS Act has created a transparent regulatory framework for reserve investment. According to her, the new product combines the company's long-standing experience in liquidity management with advanced digital asset infrastructure.
Anchorage Digital noted that the quality of reserve management is becoming a critical factor in transforming stablecoins into a fundamental element of global financial infrastructure. This statement reflects the growing institutional interest in backed digital assets.
Analytical forecast: According to expert estimates, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid widespread institutional adoption. This will inevitably increase demand for transparent collateral mechanisms through government money market funds.
Earlier, in May, State Street, together with Galaxy, launched the SWEEP fund — a tool for round-the-clock liquidity management using stablecoins. The new fund is a logical continuation of this strategy.
Expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is a landmark step, demonstrating that traditional financial institutions are actively adapting to new regulations. The GENIUS Act not only legalized stablecoins but also laid the groundwork for the emergence of reliable, regulated reserve instruments. This strengthens trust in the sector and accelerates its integration into mainstream finance.